A cash flow statement, along with the balance sheet and income statement (i.e. profit and loss statement), is one of the primary financial statements used to measure a company’s financial position. It tracks the inflow and outflow of cash resulting from operating, investing and financing activities during a given time period. The term “cash” refers to both cash and cash equivalents, which are assets readily convertible to cash. This financial statement provides relevant information for assessing a business’ liquidity, quality of earnings and solvency.
Understanding a company’s cash flow is critical to ensure a positive cash position is sustained. It’s important to identify the key cash drivers for your company’s operations, as well as to understand how the current period (i.e. month, quarter or year) compares to a prior period. This template is intended to help you outline those drivers by comparing the current and prior accounting periods in detail. A cash flow statement can provide a clearer picture of a company’s ability to pay creditors and finance growth.
This cash flow statement template can be downloaded and used by any type of business. It should be customized to include the specific types of cash flow activities that apply to your company. To fill out this spreadsheet, enter the applicable values in their respective cells. The total amounts will automatically populate based on the embedded formulas. An example cash flow statement is also included to help guide you through the process.